Approaching Resistance - Tenet Healthcare

Published on Tuesday, 27 July 2010 05:52 Written by Christopher Lynn

New York, July 27th (TradersHuddle.com) - Shares of Tenet Healthcare Corporation (NYSE:THC) are trading very close to calculated resistance at $4.78 with the current price action closing at just $4.56 placing the stock near levels that make it difficult to buy.

Tenet Healthcare Corporation (NYSE:THC) owns or operates general hospitals and related health care facilities serving communities in the United States. The Dallas, Texas company operates rehabilitation hospitals, specialty hospitals, long-term care facilities, psychiatric facilities, and medical office buildings near its general hospitals, as well as ancillary health care businesses.

Tenet's current stock range is defined by current calculated support defined at $4.26 and by the resistance level at $4.78, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Tenet Healthcare, as the stock is well above support, however, as the stock pulls back towards $4.26 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $4.78 then traders will get an opportunity to enter Tenet Healthcare stock by establishing a position as the stock moves to a higher range.